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Home > Top Stories

IT's Still A Mirage
Continued from page: 1

Rajneesh De
Thursday, March 23, 2006

IT's Strategic Importance

Any organization is considered to have a strategic IT department in case it fulfils the following four criteria:

  • The CIO/CTO should be involved either in decision making or in influencing during the process of IT purchase.

  • CFO/VP-finance should not be involved in the decision making process in IT purchase.

  • The organization should have a separate IT department. Any organization having more than one personnel involved in IT function is considered to have a separate IT department.

  • The CIO/CTO must report to the CEO/COO/MD of the organization.

As expected, existence of strategic IT Department is highest in the BPO vertical, followed by IT Services/Software.



Source: DQ-IDC Midsize Enterprise Survey


Four out of five midsize enterprises have IT department. The hit rate is nearly 100% for BPO and the IT services, while education sector scores the least on this front.







Source: DQ-IDC Midsize Enterprise Survey

In 7 of 10 enterprises the MD/CEO/COO has the final say in It purchase. In a fourth of the companies IT heads and IT staffs are the primary influencers while purchasing any IT related products and services.





Source: DQ-IDC Midsize Enterprise Survey


Source: DQ-IDC Midsize Enterprise Survey    Source: DQ-IDC Midsize Enterprise Survey

A major reason for emerging enterprises not having a separate IT department is that they don't feel the need for it. Those who do, say that having a separate IT department is expensive with low RoI and they can easily outsource people. Those organizations are likely to use IT consultants.




Most BFSI respondents said that an IT department helps in boosting employee confidence in tackling IT related challenging


Source: DQ-IDC Midsize Enterprise Survey

In 9 out of 10 organizations, decision
 for purchasing IT products or services is centralized at the head office, which invariably delay the process of purchase. In case of the Services vertical, the figures are a little lower.

At an overall level, only one in every ten organizations utilize the services of IT consultants, being high in the case of BFSI and Education.

                                                               Source: DQ-IDC Midsize Enterprise Survey

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